IRS Tax Reform Tax Tip 2018-177, November 15, 2018
The Tax Cuts and Jobs Act changed depreciation limits for passenger vehicles placed in service after Dec. 31, 2017. If the taxpayer doesn¡¯t claim bonus depreciation, the greatest allowable depreciation deduction is:
- $10,000 for the first year
- $16,000 for the second year
- $9,600 for the third year
- $5,760 for each later taxable year in the recovery period
If a taxpayer claims 100 percent bonus depreciation, the greatest allowable depreciation deduction is:
- $18,000 for the first year
- $16,000 for the second year
- $9,600 for the third year
- $5,760 for each later taxable year in the recovery period
This change applies to property placed in service after Dec. 31, 2017.